Business enterprise proposition Essay Example | Topics and Well Written Essays - 1250 words

Business enterprise proposition - Essay Example The target customers of the business are young individuals who lie within the age group of 17 to 35 years who are interested in healthy living and falls in middle and upper middle class. The shop will be facing direct competition from Bodychef and indirect competition from Marks and Spencer, Sainsbury and Waitrose. The business requires an initial investment of ?60,000. So finance required by the organization is ?90,000. The company has its competitive advantage as portioning, pricing and delivery. 2. Vision, aims and objectives Vision The business plan looks towards starting a private limited company with the name â€Å"Body and Balance† and establish itself as one of the leading companies in the healthy food industry. A private limited company signifies an organization who can sell their shares privately within a group of friends or family. Private limited company has the word â€Å"Limited† in their name (Johnson and Aldhamland, n.d.; Anon., 2008). The main advantage s that the private limited company enjoys are as follows: They can raise large amount of capital. Liability is limited. Ownership is transferable. They have the flexibility to decide on the proportion of dividends and salary to be paid as compared to the sole traders whose basic accounts are subjected to tax at fixed rate. On the other hand, the private limited companies are also seen to suffer certain disadvantages like they take more time and cost to set up. At the same time the accounts are also complicated (Shakespeare, 2011). Reason for doing this business The main reason for opening a shop in this particular sector is because research has proved that as time is passing more and more people are becoming health conscious and they are getting inclined towards healthy food. Thus this business looks for tapping a hyper growth experienced by the health food industry. Aim The business aims towards attaining 5% market share in one year. Here market share is defined as the share of the market occupied by ‘Body and Balance’ out of the total potential market. The total potential is indicated as the sum total of the annual sales of all the companies operating in the market including the firm itself and the potential customers who have not made the purchase yet (Luther, 2001). Objectives The business will be starting with a small shop that will be strategically located near the local gyms in the Oxford Street area. The future plans of the business have been shown below: 1-5 years: Increase the number of branches to five. 5-10 years: Expanding the business by entering into other markets and developing new products. 10-15 years: Opening new branch at New York. 3. Business description, market environment and competitive advantage Business Description The company ‘Body and Balance’ provides healthy food to their customers that will last for 1 to 3 days. The company will also provide planning services free of cost. They have their own nutritionis t to provide innovative and up-to-date meal plan to the customers. On the requirement of the customers the company also provides supplements like nutrition and vitamins. Special orders can be taken as per the flavour of the customers. Market Environment The business will be operating in the health food market, which in UK is showing a growth of ?2 billion annually (Durisin, 2013). The company will be opening its shop in the close vicinity of the gyms. So they are mainly aiming